EMA Crossover Strategy with Take Profit and Candle HighlightingStrategy Overview:
This strategy is based on the Exponential Moving Averages (EMA), specifically the EMA 20 and EMA 50. It takes advantage of EMA crossovers to identify potential trend reversals and uses multiple take-profit levels and a stop-loss for risk management.
Key Components:
EMA Crossover Signals:
Buy Signal (Uptrend): A buy signal is generated when the EMA 20 crosses above the EMA 50, signaling the start of a potential uptrend.
Sell Signal (Downtrend): A sell signal is generated when the EMA 20 crosses below the EMA 50, signaling the start of a potential downtrend.
Take Profit Levels:
Once a buy or sell signal is triggered, the strategy calculates multiple take-profit levels based on the range of the previous candle. The user can define multipliers for each take-profit level.
Take Profit 1 (TP1): 50% of the previous candle's range above or below the entry price.
Take Profit 2 (TP2): 100% of the previous candle's range above or below the entry price.
Take Profit 3 (TP3): 150% of the previous candle's range above or below the entry price.
Take Profit 4 (TP4): 200% of the previous candle's range above or below the entry price.
These levels are adjusted dynamically based on the previous candle's high and low, so they adapt to changing market conditions.
Stop Loss:
A stop-loss is set to manage risk. The default stop-loss is 3% from the entry price, but this can be adjusted in the settings. The stop-loss is triggered if the price moves against the position by this amount.
Trend Direction Highlighting:
The strategy highlights the bars (candles) with colors:
Green bars indicate an uptrend (when EMA 20 crosses above EMA 50).
Red bars indicate a downtrend (when EMA 20 crosses below EMA 50).
These visual cues help users easily identify the market direction.
Strategy Entries and Exits:
Entries: The strategy enters a long (buy) position when the EMA 20 crosses above the EMA 50 and a short (sell) position when the EMA 20 crosses below the EMA 50.
Exits: The strategy exits the positions at any of the defined take-profit levels or the stop-loss. Multiple exit levels provide opportunities to take profit progressively as the price moves in the favorable direction.
Entry and Exit Conditions in Detail:
Buy Entry Condition (Uptrend):
A buy position is opened when EMA 20 crosses above EMA 50, signaling the start of an uptrend.
The strategy calculates take-profit levels above the entry price based on the previous bar's range (high-low) and the multipliers for TP1, TP2, TP3, and TP4.
Sell Entry Condition (Downtrend):
A sell position is opened when EMA 20 crosses below EMA 50, signaling the start of a downtrend.
The strategy calculates take-profit levels below the entry price, similarly based on the previous bar's range.
Exit Conditions:
Take Profit: The strategy attempts to exit the position at one of the take-profit levels (TP1, TP2, TP3, or TP4). If the price reaches any of these levels, the position is closed.
Stop Loss: The strategy also has a stop-loss set at a default value (3% below the entry for long trades, and 3% above for short trades). The stop-loss helps to protect the position from significant losses.
Backtesting and Performance Metrics:
The strategy can be backtested using TradingView's Strategy Tester. The results will show how the strategy would have performed historically, including key metrics like:
Net Profit
Max Drawdown
Win Rate
Profit Factor
Average Trade Duration
These performance metrics can help users assess the strategy's effectiveness over historical periods and optimize the input parameters (e.g., multipliers, stop-loss level).
Customization:
The strategy allows for the adjustment of several key input values via the settings panel:
Take Profit Multipliers: Users can customize the multipliers for each take-profit level (TP1, TP2, TP3, TP4).
Stop Loss Percentage: The user can also adjust the stop-loss percentage to a custom value.
EMA Periods: The default periods for the EMA 50 and EMA 20 are fixed, but they can be adjusted for different market conditions.
Pros of the Strategy:
EMA Crossover Strategy: A classic and well-known strategy used by traders to identify the start of new trends.
Multiple Take Profit Levels: By taking profits progressively at different levels, the strategy locks in gains as the price moves in favor of the position.
Clear Trend Identification: The use of green and red bars makes it visually easier to follow the market's direction.
Risk Management: The stop-loss and take-profit features help to manage risk and optimize profit-taking.
Cons of the Strategy:
Lagging Indicators: The strategy relies on EMAs, which are lagging indicators. This means that the strategy might enter trades after the trend has already started, leading to missed opportunities or less-than-ideal entry prices.
No Confirmation Indicators: The strategy purely depends on the crossover of two EMAs and does not use other confirming indicators (e.g., RSI, MACD), which might lead to false signals in volatile markets.
How to Use in Real-Time Trading:
Use for Backtesting: Initially, use this strategy in backtest mode to understand how it would have performed historically with your preferred settings.
Paper Trading: Once comfortable, you can use paper trading to test the strategy in real-time market conditions without risking real money.
Live Trading: After testing and optimizing the strategy, you can consider using it for live trading with proper risk management in place (e.g., starting with a small position size and adjusting parameters as needed).
Summary:
This strategy is designed to identify trend reversals using EMA crossovers, with customizable take-profit levels and a stop-loss to manage risk. It's well-suited for traders looking for a systematic way to enter and exit trades based on clear market signals, while also providing flexibility to adjust for different risk profiles and trading styles.
Candlestick analysis
DCA Strategy with HedgingThis strategy implements a dynamic hedging system with Dollar-Cost Averaging (DCA) based on the 34 EMA. It can hold simultaneous long and short positions, making it suitable for ranging and trending markets.
Key Features:
Uses 34 EMA as baseline indicator
Implements hedging with simultaneous long/short positions
Dynamic DCA for position management
Automatic take-profit adjustments
Entry confirmation using 3-candle rule
How it Works
Long Entries:
Opens when price closes above 34 EMA for 3 candles
Adds positions every 0.1% price drop
Takes profit at 0.05% above average entry
Short Entries:
Opens when price closes below 34 EMA for 3 candles
Adds positions every 0.1% price rise
Takes profit at 0.05% below average entry
Settings
EMA Length: Controls the EMA period (default: 34)
DCA Interval: Price movement needed for additional entries (default: 0.1%)
Take Profit: Profit target from average entry (default: 0.05%)
Initial Position: Starting position size (default: 1.0)
Indicators
L: Long Entry
DL: Long DCA
S: Short Entry
DS: Short DCA
LTP: Long Take Profit
STP: Short Take Profit
Alerts
Compatible with all standard TradingView alerts:
Position Opens (Long/Short)
DCA Entries
Take Profit Hits
Note: This strategy works best on lower timeframes with high liquidity pairs. Adjust parameters based on asset volatility.
Engulfing Candlestick StrategyEver wondered whether the Bullish or Bearish Engulfing pattern works or has statistical significance? This script is for you. It works across all markets and timeframes.
The Engulfing Candlestick Pattern is a widely used technical analysis pattern that traders use to predict potential price reversals. It consists of two candles: a small candle followed by a larger one that "engulfs" the previous candle. This pattern is considered bullish when it occurs in a downtrend (bullish engulfing) and bearish when it occurs in an uptrend (bearish engulfing).
Statistical Significance of the Engulfing Pattern:
While many traders rely on candlestick patterns for making decisions, research on the statistical significance of these patterns has produced mixed results. A study by Dimitrios K. Koutoupis and K. M. Koutoupis (2014), titled "Testing the Effectiveness of Candlestick Chart Patterns in Forex Markets," indicates that candlestick patterns, including the engulfing pattern, can provide some predictive power, but their success largely depends on the market conditions and timeframe used. The researchers concluded that while some candlestick patterns can be useful, traders must combine them with other indicators or market knowledge to improve their predictive accuracy.
Another study by Brock, Lakonishok, and LeBaron (1992), "Simple Technical Trading Rules and the Stochastic Properties of Stock Returns," explores the profitability of technical indicators, including candlestick patterns, and finds that simple trading rules, such as those based on moving averages or candlestick patterns, can occasionally outperform a random walk in certain market conditions.
However, Jorion (1997), in his work "The Risk of Speculation: The Case of Technical Analysis," warns that the reliability of candlestick patterns, including the engulfing patterns, can vary significantly across different markets and periods. Therefore, it's important to use these patterns as part of a broader trading strategy that includes other risk management techniques and technical indicators.
Application Across Markets:
This script applies to all markets (e.g., stocks, commodities, forex) and timeframes, making it a versatile tool for traders seeking to explore the statistical effectiveness of the bullish and bearish engulfing patterns in their own trading.
Conclusion:
This script allows you to backtest and visualize the effectiveness of the Bullish and Bearish Engulfing patterns across any market and timeframe. While the statistical significance of these patterns may vary, the script provides a clear framework for evaluating their performance in real-time trading conditions. Always remember to combine such patterns with other risk management strategies and indicators to enhance their predictive power.
Daytrading ES Wick Length StrategyThis Pine Script strategy calculates the combined length of upper and lower wicks of candlesticks and uses a customizable moving average (MA) to identify potential long entry points. The strategy compares the total wick length to the MA with an added offset. If the wick length exceeds the offset-adjusted MA, the strategy enters a long position. The position is automatically closed after a user-defined holding period.
Key Features:
1. Calculates the sum of upper and lower wicks for each candlestick.
2. Offers four types of moving averages (SMA, EMA, WMA, VWMA) for analysis.
3. Allows the user to set a customizable MA length and an offset to shift the MA.
4. Automatically exits positions after a specified number of bars.
5. Visualizes the wick length as a histogram and the offset-adjusted MA as a line.
References:
• Candlestick wick analysis: Nison, S. (1991). Japanese Candlestick Charting Techniques.
• Moving averages: Brock, W., Lakonishok, J., & LeBaron, B. (1992). “Simple Technical Trading Rules and the Stochastic Properties of Stock Returns”. Journal of Finance.
This strategy is suitable for identifying candlesticks with significant volatility and long wicks, which can indicate potential trend reversals or continuations.
Omega_galskyThe strategy uses three Exponential Moving Averages (EMAs) — EMA8, EMA21, and EMA89 — to decide when to open buy or sell trades. It also includes a mechanism to move the Stop Loss (SL) to the Break-Even (BE) point, which is the entry price, once the price reaches a Risk-to-Reward (R2R) ratio of 1:1.
Key Steps:
Calculating EMAs: The script computes the EMA values for the specified periods. These help identify market trends and potential entry points.
Buy Conditions:
EMA8 crosses above EMA21.
The candle that causes the crossover is green (closing price is higher than the opening price).
The closing price is above EMA89.
If all conditions are met, a buy order is executed.
Sell Conditions:
EMA8 crosses below EMA21.
The candle that causes the crossover is red (closing price is lower than the opening price).
The closing price is below EMA89.
If all conditions are met, a sell order is executed.
Stop Loss and Take Profit:
Initial Stop Loss and Take Profit levels are calculated based on the entry price and a percentage defined by the user.
These levels help protect against large losses and lock in profits.
Break-Even Logic:
When the price moves favorably to reach a 1:1 R2R ratio:
For a buy trade, the Stop Loss is moved to the entry price if the price increases sufficiently.
For a sell trade, the Stop Loss is moved to the entry price if the price decreases sufficiently.
This ensures the trade is risk-free after the price reaches the predefined level.
Visual Representation:
The EMAs are plotted on the chart for easy visualization of trends and crossovers.
Entry and exit points are also marked on the chart to track trades.
Purpose:
The strategy is designed to capitalize on EMA crossovers while minimizing risks using Break-Even logic and predefined Stop Loss/Take Profit levels. It automates decision-making for trend-following traders and ensures disciplined risk management.
IU 4 Bar UP StrategyIU 4 Bar UP Strategy
The IU 4 Bar UP Strategy is a trend-following strategy designed to identify and execute long trades during strong bullish momentum, combined with confirmation from the SuperTrend indicator. This strategy is suitable for traders aiming to capitalize on sustained upward market movements.
Features :
1. SuperTrend Confirmation: Incorporates the SuperTrend indicator as a dynamic support/resistance line to filter trades in the direction of the trend.
2. 4 Consecutive Bullish Bars: Detects a series of 4 bullish candles as a signal for strong upward momentum, ensuring robust trade setups.
3. Dynamic Alerts: Sends alerts for trade entries and exits to keep traders informed.
4. Visual Enhancements:
- Plots the SuperTrend indicator on the chart.
- Changes the background color while a trade is active for easy visualization.
Inputs :
- SuperTrend ATR Period: The period used to calculate the Average True Range (ATR) for the SuperTrend indicator.
- SuperTrend ATR Factor: The multiplier for the ATR in the SuperTrend calculation.
Entry Conditions :
A long entry is triggered when:
1. The last 4 consecutive candles are bullish (closing prices are higher than opening prices).
2. The current price is above the SuperTrend line.
3. The strategy is not already in a position.
4. The bar is confirmed (not a partially formed bar).
When all these conditions are met, the strategy enters a long position and provides an alert:
"Long Entry triggered"
Exit Conditions :
The strategy exits the long position when:
1. The closing price drops below the SuperTrend line.
2. An alert is generated: "Close the long Trade"
Visualization :
- The SuperTrend line is plotted, dynamically colored:
- Green when the trend is bullish.
- Red when the trend is bearish.
- The background color turns semi-transparent green while a trade is active, indicating a long position.
Do use proper risk management while using this strategy.
IU open equal to high/low strategyIU open equal to high/low strategy:
The "IU Open Equal to High/Low Strategy" is designed to identify and trade specific market conditions where the day's first price action shows a strong directional bias. This strategy automatically enters trades based on the relationship between the market's open price and its first high or low of the day.
Entry Conditions:
1. Long Entry: A long position is initiated when the first open price of the session equals the day's first low. This signals a potential upward move.
2. Short Entry: A short position is initiated when the first open price of the session equals the day's first high. This signals a potential downward move.
Exit Conditions:
1. Stop Loss (SL): For both long and short trades, the stop loss is calculated based on the low or high of the candle where the position was entered.
2. Take Profit (TP): The take profit is set using a Risk-to-Reward (RTR) ratio, which is customizable by the user. The TP is calculated relative to the entry price and the distance between the entry and the stop loss.
Additional Features:
- Plots are used to visualize the entry price, stop loss, and take profit levels directly on the chart, providing clear and actionable insights.
- Labels are displayed to indicate the occurrence of the "Open == Low" or "Open == High" conditions for easier identification of potential trade setups.
- A dynamic fill highlights the areas between the entry price and the stop loss or take profit, offering a clear visual representation of the trade's risk and reward zones.
This strategy is designed for traders looking to capitalize on directional momentum at the start of the trading session. It is customizable, allowing users to set their desired Risk-to-Reward ratio and tailor the strategy to fit their trading style.
MFS-3 Bars Pattern Strategy3 Bar Pattern Strategy
Detects an Ignite Candle followed by a Pullback Candle followed by a Confirmation Candle.
A Box will be drawn around the setup and three arrows will identify I, P, C (Ignite, Pullback, Confirmation) the setup.
The strategy will calculate a Stop Loss below the Low Price of the Ignite candle and a Take Profit at 2 times the Stop Loss giving a Risk to Reward Ratio of 1:2.
Extra conditions are included to reduce false triggers:
- A down trend must be detected using 3 SMA (Long, Medium, Short) that should be aligned from Long to Short one above the other.
- The Ignite Candle's body must be BELOW the Short SMA
An input form is available to adjust some strategy parameters.
Performance Note
----------------------
Trading conditions are very strict, so most of the time, no signals will be detected in the Strategy window.
This strategy should only be one of many strategies used for trade setups.
Hope you enjoy it.
Refined SMA/EMA Crossover with Ichimoku and 200 SMA FilterYour **Refined SMA/EMA Crossover with Ichimoku and 200 SMA Filter** strategy is a multi-faceted technical trading strategy that combines several key technical indicators to refine entry and exit points for trades. Here's a breakdown of the components and how they work together:
### 1. **SMA/EMA Crossover**
- **Simple Moving Average (SMA) & Exponential Moving Average (EMA) Crossover**:
- The core idea behind the crossover strategy is to use the relationship between two moving averages to generate buy or sell signals.
- **SMA** (Simple Moving Average) gives an average of past prices over a set period.
- **EMA** (Exponential Moving Average) places more weight on recent prices, making it more responsive to price movements.
- A **bullish crossover** occurs when a shorter period moving average (such as a 50-period EMA) crosses above a longer period moving average (such as a 200-period SMA), signaling a potential buy.
- A **bearish crossover** occurs when a shorter period moving average crosses below the longer period moving average, signaling a potential sell.
### 2. **Ichimoku Cloud**
- The **Ichimoku Cloud** is a versatile indicator that provides insight into trend direction, support and resistance levels, and momentum.
- **Cloud (Kumo)**: The space between the Senkou Span A and Senkou Span B lines. It helps identify whether the market is in an uptrend, downtrend, or consolidation.
- **Tenkan-sen** (Conversion Line) and **Kijun-sen** (Base Line): These lines are used for additional confirmation of trend direction.
- **Chikou Span**: A lagging line that is used to confirm the trend.
- The general trading rules based on the Ichimoku Cloud are:
- **Bullish Signal**: When the price is above the cloud and the Tenkan-sen crosses above the Kijun-sen.
- **Bearish Signal**: When the price is below the cloud and the Tenkan-sen crosses below the Kijun-sen.
### 3. **200 SMA Filter**
- The **200 SMA Filter** serves as a long-term trend filter.
- When the price is **above the 200 SMA**, it signals a long-term bullish trend, and you only look for buying opportunities.
- When the price is **below the 200 SMA**, it signals a long-term bearish trend, and you only look for selling opportunities.
- This filter helps to avoid counter-trend trades, aligning your positions with the broader market trend.
### **How the Strategy Works Together**
- **Trade Setup (Long Position)**
1. The **200 SMA Filter** must confirm an **uptrend** by ensuring that the price is above the 200 SMA.
2. A **bullish crossover** (e.g., the 50 EMA crossing above the 200 SMA) occurs.
3. **Ichimoku Cloud** confirms a bullish trend, with the price above the cloud and the Tenkan-sen crossing above the Kijun-sen.
4. You enter a **long trade** with this confluence of signals.
- **Trade Setup (Short Position)**
1. The **200 SMA Filter** must confirm a **downtrend** by ensuring the price is below the 200 SMA.
2. A **bearish crossover** (e.g., the 50 EMA crossing below the 200 SMA) occurs.
3. **Ichimoku Cloud** confirms a bearish trend, with the price below the cloud and the Tenkan-sen crossing below the Kijun-sen.
4. You enter a **short trade** with this confluence of signals.
### **Exit Strategy**
- Exits can be determined based on any of the following:
- **SMA/EMA crossover reversal**: Exit when the shorter-term moving average crosses back below the longer-term moving average for a long position or crosses above for a short position.
- **Ichimoku Cloud reversal**: If the price breaks through the cloud or the Tenkan-sen and Kijun-sen lines cross in the opposite direction.
- **Profit target or stop loss**: Setting predefined profit targets or using a trailing stop to lock in profits as the trade moves in your favor.
Summary of the Strategy
This strategy is designed to identify strong trends and avoid false signals by combining:
SMA/EMA crossovers for immediate market direction signals.
Ichimoku Cloud for confirming the strength and trend direction.
A 200
SMA filter to ensure trades align with the long-term trend.
By using these multiple indicators together, the strategy aims to refine entry and exit points, minimize risk, and increase the likelihood of successful trades.
Tomas Ratio Strategy with Multi-Timeframe AnalysisHello,
I would like to present my new indicator I have compiled together inspired by Calmar Ratio which is a ratio that measures gains vs losers but with a little twist.
Basically the idea is that if HLC3 is above HLC3 (or previous one) it will count as a gain and it will calculate the percentage of winners in last 720 hourly bars and then apply 168 hour standard deviation to the weekly average daily gains.
The idea is that you're supposed to buy if the thick blue line goes up and not buy if it goes down (signalized by the signal line). I liked that idea a lot, but I wanted to add an option to fire open and close signals. I have also added a logic that it not open more trades in relation the purple line which shows confidence in buying.
As input I recommend only adjusting the amount of points required to fire a signal. Note that the lower amount you put, the more open trades it will allow (and vice versa)
Feel free to remove that limiter if you want to. It works without it as well, this script is meant for inexperienced eye.
I will also publish a indicator script with this limiter removed and alerts added for you to test this strategy if you so choose to.
Also, I have added that the trades will enter only if price is above 720 period EMA
Disclaimer
This strategy is for educational purposes only and should not be considered financial advice. Always backtest thoroughly and adjust parameters based on your trading style and market conditions.
Made in collaboration with ChatGPT.
Liquidity + Engulfment StrategyThis strategy identifies potential trading opportunities by combining bullish and bearish engulfing candle patterns with liquidity seal-off points. The logic is based on the concept of engulfing candles, which signal a shift in market sentiment, and liquidity lines, which represent local price extremes (highs and lows) that can indicate potential reversal or continuation points.
Key Features:
Mode Selection
The strategy allows for three modes: "Both", "Bullish Only", and "Bearish Only". Users can choose whether to trade both directions, only bullish setups, or only bearish setups.
Time Range
Users can define a specific time range for when the strategy is active, enabling tailored analysis and trade execution over a desired period.
Engulfing Candles
Bullish Engulfing: A candle that closes above the high of the previous bearish candle, signaling potential upward momentum.
Bearish Engulfing: A candle that closes below the low of the previous bullish candle, indicating a potential downtrend.
Liquidity Seal-Off Points
The strategy detects local highs and local lows within a specified lookback period, which can serve as critical support and resistance points.
A bullish signal is triggered when the price touches a lower liquidity point (local low), and a bearish signal is triggered at a higher liquidity point (local high).
Signal Confirmation
Signals are only triggered when both an engulfing candle and the price action at a liquidity seal-off point align. This helps filter out weaker signals.
Consecutive signals are prevented by locking the trade direction after an initial signal and waiting for the liquidity line to be broken before re-triggering a signal.
Entry and Exit Conditions
The strategy can enter both long (bullish) or short (bearish) positions based on the mode and signals.
Exit is based on opposing signals or reaching predefined stop-loss and take-profit levels.
Alerts
The strategy supports alert conditions to notify users when bullish engulfing after a lower liquidity touch or bearish engulfing after an upper liquidity touch is detected.
Nifty Options Trendy Markets with TSLNifty options strategy that works on volume, technical analysis etc
SMB MagicSMB Magic
Overview: SMB Magic is a powerful technical strategy designed to capture breakout opportunities based on price movements, volume spikes, and trend-following logic. This strategy works exclusively on the XAU/USD symbol and is optimized for the 15-minute time frame. By incorporating multiple factors, this strategy identifies high-probability trades with a focus on risk management.
Key Features:
Breakout Confirmation:
This strategy looks for price breakouts above the previous high or below the previous low, with a significant volume increase. A breakout is considered valid when it is supported by strong volume, confirming the strength of the price move.
Price Movement Filter:
The strategy ensures that only significant price movements are considered for trades, helping to avoid low-volatility noise. This filter targets larger price swings to maximize potential profits.
Exponential Moving Average (EMA):
A long-term trend filter is applied to ensure that buy trades occur only when the price is above the moving average, and sell trades only when the price is below it.
Fibonacci Levels:
Custom Fibonacci retracement levels are drawn based on recent price action. These levels act as dynamic support and resistance zones and help determine the exit points for trades.
Take Profit/Stop Loss:
The strategy incorporates predefined take profit and stop loss levels, designed to manage risk effectively. These levels are automatically applied to trades and are adjusted based on the market's volatility.
Volume Confirmation:
A volume multiplier confirms the strength of the breakout. A trade is only considered when the volume exceeds a certain threshold, ensuring that the breakout is supported by sufficient market participation.
How It Works:
Entry Signals:
Buy Signal: A breakout above the previous high, accompanied by significant volume and price movement, occurs when the price is above the trend-following filter (e.g., EMA).
Sell Signal: A breakout below the previous low, accompanied by significant volume and price movement, occurs when the price is below the trend-following filter.
Exit Strategy:
Each position (long or short) has predefined take-profit and stop-loss levels, which are designed to protect capital and lock in profits at key points in the market.
Fibonacci Levels:
Fibonacci levels are drawn to identify potential areas of support or resistance, which can be used to guide exits and stop-loss placements.
Important Notes:
Timeframe Restriction: This strategy is designed specifically for the 15-minute time frame.
Symbol Restriction: The strategy works exclusively on the XAU/USD (Gold) symbol and is not recommended for use with other instruments.
Best Performance in Trending Markets: It works best in trending conditions where breakouts occur frequently.
Disclaimer:
Risk Warning: Trading involves risk, and past performance is not indicative of future results. Always conduct your own research and make informed decisions before trading.
TFMTFM Strategy Explanation
Overview
The TFM (Timeframe Multiplier) strategy is a PineScript trading bot that utilizes multiple timeframes to identify entry and exit points.
Inputs
1. tfm (Timeframe Multiplier): Multiplies the chart's timeframe to create a higher timeframe for analysis.
2. lns (Long and Short): Enables or disables short positions.
Logic
Calculations
1. chartTf: Gets the chart's timeframe in seconds.
2. tfTimes: Calculates the higher timeframe by multiplying chartTf with tfm.
3. MintickerClose and MaxtickerClose: Retrieve the minimum and maximum closing prices from the higher timeframe using request.security.
- MintickerClose: Finds the lowest low when the higher timeframe's close is below its open.
- MaxtickerClose: Finds the highest high when the higher timeframe's close is above its open.
Entries and Exits
1. Long Entry: When the current close price crosses above MaxtickerClose.
2. Short Entry (if lns is true): When the current close price crosses below MintickerClose.
3. Exit Long: When the short condition is met (if lns is false) or when the trade is manually closed.
Strategy
1. Attach the script to a chart.
2. Adjust tfm and lns inputs.
3. Monitor entries and exits.
Example Use Cases
1. Intraday trading with tfm = 2-5.
2. Swing trading with tfm = 10-30.
Tips
1. Experiment with different tfm values.
2. Use lns to control short positions.
3. Combine with other indicators for confirmation.
SMC StrategyThis Pine Script strategy is based on Smart Money Concepts (SMC), designed for TradingView. Here's a brief summary of what the script does:
1. Swing High and Low Calculation: It identifies recent swing highs and lows, which are used to define key zones.
2. Equilibrium, Premium, and Discount Zones:
- Equilibrium is the midpoint between the swing high and low.
- Premium Zone is above the equilibrium, indicating a potential resistance area (sell zone).
- Discount Zone is below the equilibrium, indicating a potential support area (buy zone).
3. Simple Moving Average (SMA): It uses a 50-period SMA to determine the trend direction. If the price is above the SMA, the trend is bullish; if it's below, the trend is bearish.
4. Buy and Sell Signals:
- Buy Signal: Generated when the price is in the discount zone and above the equilibrium, with the price also above the SMA.
- Sell Signal: Triggered when the price is in the premium zone and below the equilibrium, with the price also below the SMA.
5. Order Blocks: It detects basic order blocks by identifying the highest high and lowest low within the last 20 bars. These levels help confirm the buy and sell signals.
6. Liquidity Zones: It marks the swing high and low as potential liquidity zones, indicating where price may reverse due to institutional players' activity.
The strategy then executes trades based on these signals, plotting buy and sell markers on the chart and showing the key levels (zones) and trend direction.
VWAP Stdev Bands Strategy (Long Only)The VWAP Stdev Bands Strategy (Long Only) is designed to identify potential long entry points in trending markets by utilizing the Volume Weighted Average Price (VWAP) and standard deviation bands. This strategy focuses on capturing upward price movements, leveraging statistical measures to determine optimal buy conditions.
Key Features:
VWAP Calculation: The strategy calculates the VWAP, which represents the average price a security has traded at throughout the day, weighted by volume. This is an essential indicator for determining the overall market trend.
Standard Deviation Bands: Two bands are created above and below the VWAP, calculated using specified standard deviations. These bands act as dynamic support and resistance levels, providing insight into price volatility and potential reversal points.
Trading Logic:
Long Entry Condition: A long position is triggered when the price crosses below the lower standard deviation band and then closes above it, signaling a potential price reversal to the upside.
Profit Target: The strategy allows users to set a predefined profit target, closing the long position once the specified target is reached.
Time Gap Between Orders: A customizable time gap can be specified to prevent multiple orders from being placed in quick succession, allowing for a more controlled trading approach.
Visualization: The VWAP and standard deviation bands are plotted on the chart with distinct colors, enabling traders to visually assess market conditions. The strategy also provides optional plotting of the previous day's VWAP for added context.
Use Cases:
Ideal for traders looking to engage in long-only positions within trending markets.
Suitable for intraday trading strategies or longer-term approaches based on market volatility.
Customization Options:
Users can adjust the standard deviation values, profit target, and time gap to tailor the strategy to their specific trading style and market conditions.
Note: As with any trading strategy, it is important to conduct thorough backtesting and analysis before live trading. Market conditions can change, and past performance does not guarantee future results.
US 30 Daily Breakout Strategy The US 30 Daily Breakout Strategy (Single Trade Per Breakout/Breakdown) is a trading approach for the US 30 (Dow Jones Industrial Average) that aims to capture breakout or breakdown moves based on the previous day’s high and low levels. The strategy includes mechanisms to take only one trade per breakout (or breakdown) each day and ensures that each trade is executed only when no other trade is open.
Entry Conditions:
Long Trade (Breakout): The strategy initiates a long position if the current candle closes above the previous day's high, indicating an upward breakout. Only one breakout trade can occur per day, regardless of whether the price remains above the previous high.
Short Trade (Breakdown): The strategy initiates a short position if the current candle closes below the previous day's low, indicating a downward breakdown. Similarly, only one breakdown trade can occur per day.
Risk Management:
Take Profit and Stop Loss: Each trade has a take profit and stop loss of 50 points, aiming to cap profit and limit loss effectively for each position.
Daily Reset Mechanism:
At the start of each new day (based on New York time), the strategy resets its flags, allowing it to look for new breakout or breakdown trades. This reset ensures that only one trade can be taken per breakout or breakdown level each day.
Execution Logic
Flags for Trade Limitation: Flags (breakout_traded and breakdown_traded) are used to ensure only one breakout or breakdown trade is taken per day. These flags reset daily.
Dynamic Plotting: The previous day’s high and low are plotted on the chart, providing a visual reference for potential breakout or breakdown levels.
Overall Objective
This strategy is designed to capture single-directional daily moves by identifying significant breakouts or breakdowns beyond the previous day’s range. The fixed profit and loss limits ensure the trades are managed with controlled risk, while the daily reset feature prevents overtrading and limits each trade opportunity to one breakout and one breakdown attempt per day.
Equilibrium Candles + Pattern [Honestcowboy]The Equilibrium Candles is a very simple trend continuation or reversal strategy depending on your settings.
How an Equilibrium Candle is created:
We calculate the equilibrium by measuring the mid point between highest and lowest point over X amount of bars back.
This now is the opening price for each bar and will be considered a green bar if price closes above equilibrium.
Bars get shaded by checking if regular candle close is higher than open etc. So you still see what the normal candles are doing.
Why are they useful?
The equilibrium is calculated the same as Baseline in Ichimoku Cloud. Which provides a point where price is very likely to retrace to. This script visualises the distance between close and equilibrium using candles. To provide a clear visual of how price relates to this equilibrium point.
This also makes it more straightforward to develop strategies based on this simple concept and makes the trader purely focus on this relationship and not think of any Ichimoku Cloud theories.
Script uses a very simple pattern to enter trades:
It will count how many candles have been one directional (above or below equilibrium)
Based on user input after X candles (7 by default) script shows we are in a trend (bg colors)
On the first pullback (candle closes on other side of equilibrium) it will look to enter a trade.
Places a stop order at the high of the candle if bullish trend or reverse if bearish trend.
If based on user input after X opposite candles (2 by default) order is not filled will cancel it and look for a new trend.
Use Reverse Logic:
There is a use reverse logic in the settings which on default is turned on. It will turn long orders into short orders making the stop orders become limit orders. It will use the normal long SL as target for the short. And TP as stop for the short. This to provide a means to reverse equity curve in case your pair is mean reverting by nature instead of trending.
ATR Calculation:
Averaged ATR, which is using ta.percentile_nearest_rank of 60% of a normal ATR (14 period) over the last 200 bars. This in simple words finds a value slightly above the mean ATR value over that period.
Big Candle Exit Logic:
Using Averaged ATR the script will check if a candle closes X times that ATR from the equilibrium point. This is then considered an overextension and all trades are closed.
This is also based on user input.
Simple trade management logic:
Checks if the user has selected to use TP and SL, or/and big candle exit.
Places a TP and SL based on averaged ATR at a multiplier based on user Input.
Closes trade if there is a Big Candle Exit or an opposite direction signal from indicator.
Script can be fully automated to MT5
There are risk settings in % and symbol settings provided at the bottom of the indicator. The script will send alert to MT5 broker trying to mimic the execution that happens on tradingview. There are always delays when using a bridge to MT5 broker and there could be errors so be mindful of that. This script sends alerts in format so they can be read by tradingview.to which is a bridge between the platforms.
Use the all alert function calls feature when setting up alerts and make sure you provide the right webhook if you want to use this approach.
There is also a simple buy and sell alert feature if you don't want to fully automate but still get alerts. These are available in the dropdown when creating an alert.
Almost every setting in this indicator has a tooltip added to it. So if any setting is not clear hover over the (?) icon on the right of the setting.
The backtest uses a 4% exposure per trade and a 10 point slippage. I did not include a commission cause I'm not personaly aware what the commissions are on most forex brokers. I'm only aware of minimal slippage to use in a backtest. Trading conditions vary per broker you use so always pay close attention to trading costs on your own broker. Use a full automation at your own risk and discretion and do proper backtesting.
Price Action StrategyThe **Price Action Strategy** is a tool designed to capture potential market reversals by utilizing classic reversal candlestick patterns such as Hammer, Shooting Star, Doji, and Pin Bar near dinamic support and resistance levels.
***Note to moderators
- The moving average was removed from the strategy because it was not suitable for the strategy and not participating in the entry or exit criteria.
- The moving average length has been replaced/renamed by the support/resistance lenght.
- The bullish engulfing and bearish engulfing patterns were also removed because in practice they were not working as entry criteria, since the candle price invariably closes far from the support/resistance level even considering the sensitivity range. There was no change in the backtest results after removing these patterns.
### Key Elements of the Strategy
1. Support and Resistance Levels
- Support and resistance are pivotal price levels where the asset has previously struggled to move lower (support) or higher (resistance). These levels act as psychological barriers where buying interest (at support) or selling interest (at resistance) often increases, potentially causing price reversals.
- In this strategy, support is calculated as the lowest low and resistance as the highest high over a 16-period length. When the price nears these levels, it indicates possible zones for a reversal, and the strategy looks for specific candlestick patterns to confirm an entry.
2. Candlestick Patterns
- This strategy uses classic reversal patterns, including:
- **Hammer**: Indicates a buy signal, suggesting rejection of lower prices.
- **Shooting Star**: Suggests a sell signal, showing rejection of higher prices.
- **Doji**: Reflects indecision and potential reversal.
- **Pin Bar**: Represents price rejection with a long shadow, often signaling a reversal.
By combining these reversal patterns with the proximity to dinamic support or resistance levels, the strategy aims to capture potential reversal movements.
3. Sensitivity Level
- The sensitivity parameter adjusts the acceptable range (Default 0.018 = 1.8%) around support and resistance levels within which reversal patterns can trigger trades (i.e. the closing price of the candle must occur within the specified range defined by the sensitivity parameter). A higher sensitivity value expands this range, potentially leading to less accurate signals, as it may allow for more false positives.
4. Entry Criteria
- **Buy (Long)**: A Hammer, Doji, or Pin Bar pattern near support.
- **Sell (Short)**: A Shooting Star, Doji, or Pin Bar near resistance.
5. Exit criteria
- Take profit = 9.5%
- Stop loss = 16%
6. No Repainting
- The Price Action Strategy is not subject to repainting.
7. Position Sizing by Equity and risk management
- This strategy has a default configuration to operate with 35% of the equity. The stop loss is set to 16% from the entry price. This way, the strategy is putting at risk about 16% of 35% of equity, that is, around 5.6% of equity for each trade. The percentage of equity and stop loss can be adjusted by the user according to their risk management.
8. Backtest results
- This strategy was subjected to deep backtest and operations in replay mode on **1000000MOGUSDT.P**, with the inclusion of transaction fees at 0.12% and slipagge of 5 ticks, and the past results have shown consistent profitability. Past results are no guarantee of future results. The strategy's backtest results may even be due to overfitting with past data.
9. Chart Visualization
- Support and resistance levels are displayed as green (support) and red (resistance) lines.
- Only the candlestick pattern that generated the entry signal to triger the trade is identified and labeled on the chart. During the operation, the occurrence of new Doji, Pin Bar, Hammer and Shooting Star patterns will not be demonstrated on the chart, since the exit criteria are based on percentage take profit and stop loss.
Doji:
Pin Bar and Doji
Shooting Star and Doji
Hammer
10. Default settings
Chart timeframe: 20 min
Moving average lenght: 16
Sensitivity: 0.018
Stop loss (%): 16
Take Profit (%): 9.5
BYBIT:1000000MOGUSDT.P
Gold Scalping Strategy with Precise EntriesThe Gold Scalping Strategy with Precise Entries is designed to take advantage of short-term price movements in the gold market (XAU/USD). This strategy uses a combination of technical indicators and chart patterns to identify precise buy and sell opportunities during times of consolidation and trend continuation.
Key Elements of the Strategy:
Exponential Moving Averages (EMAs):
50 EMA: Used as the shorter-term moving average to detect the recent price trend.
200 EMA: Used as the longer-term moving average to determine the overall market trend.
Trend Identification:
A bullish trend is identified when the 50 EMA is above the 200 EMA.
A bearish trend is identified when the 50 EMA is below the 200 EMA.
Average True Range (ATR):
ATR (14) is used to calculate the market's volatility and to set a dynamic stop loss based on recent price movements. Higher ATR values indicate higher volatility.
ATR helps define a suitable stop-loss distance from the entry point.
Relative Strength Index (RSI):
RSI (14) is used as a momentum oscillator to detect overbought or oversold conditions.
However, in this strategy, the RSI is primarily used as a consolidation filter to look for neutral zones (between 45 and 55), which may indicate a potential breakout or trend continuation after a consolidation phase.
Engulfing Patterns:
Bullish Engulfing: A bullish signal is generated when the current candle fully engulfs the previous bearish candle, indicating potential upward momentum.
Bearish Engulfing: A bearish signal is generated when the current candle fully engulfs the previous bullish candle, signaling potential downward momentum.
Precise Entry Conditions:
Long (Buy):
The 50 EMA is above the 200 EMA (bullish trend).
The RSI is between 45 and 55 (neutral/consolidation zone).
A bullish engulfing pattern occurs.
The price closes above the 50 EMA.
Short (Sell):
The 50 EMA is below the 200 EMA (bearish trend).
The RSI is between 45 and 55 (neutral/consolidation zone).
A bearish engulfing pattern occurs.
The price closes below the 50 EMA.
Take Profit and Stop Loss:
Take Profit: A fixed 20-pip target (where 1 pip = 0.10 movement in gold) is used for each trade.
Stop Loss: The stop-loss is dynamically set based on the ATR, ensuring that it adapts to current market volatility.
Visual Signals:
Buy and sell signals are visually plotted on the chart using green and red labels, indicating precise points of entry.
Advantages of This Strategy:
Trend Alignment: The strategy ensures that trades are taken in the direction of the overall trend, as indicated by the 50 and 200 EMAs.
Volatility Adaptation: The use of ATR allows the stop loss to adapt to the current market conditions, reducing the risk of premature exits in volatile markets.
Precise Entries: The combination of engulfing patterns and the neutral RSI zone provides a high-probability entry signal that captures momentum after consolidation.
Quick Scalping: With a fixed 20-pip profit target, the strategy is designed to capture small price movements quickly, which is ideal for scalping.
This strategy can be applied to lower timeframes (such as 1-minute, 5-minute, or 15-minute charts) for frequent trade opportunities in gold trading, making it suitable for day traders or scalpers. However, proper risk management should always be used due to the inherent volatility of gold.
E9 Shark-32 Pattern Strategy The E9 Shark-32 Pattern is a powerful trading tool designed to capitalize on the Shark-32 pattern—a specific Candlestick pattern.
The Shark-32 Pattern: What Is It?
The Shark-32 pattern is a technical formation that occurs when the following conditions are met:
Higher Highs and Lower Lows: The low of two bars ago is lower than the previous bar, and the previous bar's low is lower than the current bar. At the same time, the high of two bars ago is higher than the previous bar, and the previous bar’s high is higher than the current bar.
This unique setup forms the "Shark-32" pattern, which signals potential volume squeezes and trend changes in the market.
How Does the Strategy Work?
The E9 Shark-32 Pattern Strategy builds upon this pattern by defining clear entry and exit rules based on the pattern's confirmation. Here's a breakdown of how the strategy operates:
1. Identifying the Shark-32 Pattern
When the Shark-32 pattern is confirmed, the strategy "locks" the high and low prices from the initial bar of the pattern. These locked prices serve as key levels for future trade entries and exits.
2. Entry Conditions
The strategy waits for the price to cross the pattern's locked high or low, signaling potential market direction.
Long Entry: A long trade is triggered when the closing price crosses above the locked pattern high (green line).
Short Entry: A short trade is triggered when the closing price crosses below the locked pattern low (red line).
The strategy ensures that only one trade is taken for each Shark-32 pattern, preventing overtrading and allowing traders to focus on high-probability setups.
3. Stop Loss and Take Profit Levels
The strategy has built-in risk management through stop-loss and take-profit levels, which are visually represented by the lines on the chart:
Stop Loss:
Stop loss can be adjusted in settings.
Take Profit:
For long trades: The take-profit target is set at the upper white dotted line, which is projected above the pattern high.
For short trades: The take-profit target is set at the lower white dotted line, which is projected below the pattern low.
These clearly defined levels help traders to manage risk effectively while maximizing potential returns.
4. Visual Cues
To make trading decisions even easier, the strategy provides helpful visual cues:
Green Line (Pattern High): This line represents the high of the Shark-32 pattern and serves as a resistance level and short entry signal.
Red Line (Pattern Low): This line represents the low of the Shark-32 pattern and serves as a support level and long entry signal.
White Dotted Lines: These lines represent potential profit targets, projected both above and below the pattern. They help traders define where the market might go next.
Additionally, the strategy highlights the pattern formation with color-coded bars and background shading to draw attention to the Shark-32 pattern when it is confirmed. This adds a layer of visual confirmation, making it easier to spot opportunities in real-time.
5. No Repeated Trades
An important aspect of the strategy is that once a trade is taken (either long or short), no additional trades are executed until a new Shark-32 pattern is identified. This ensures that only valid and confirmed setups are acted upon.
ICT Indicator with Paper TradingThe strategy implemented in the provided Pine Script is based on **ICT (Inner Circle Trader)** concepts, particularly focusing on **order blocks** to identify key levels for potential reversals or continuations in the market. Below is a detailed description of the strategy:
### 1. **Order Block Concept**
- **Order blocks** are price levels where large institutional orders accumulate, often leading to a reversal or continuation of price movement.
- In this strategy, **order blocks** are identified when:
- The high of the current bar crosses above the high of the previous bar (for bullish order blocks).
- The low of the current bar crosses below the low of the previous bar (for bearish order blocks).
### 2. **Buy and Sell Signal Generation**
The core of the strategy revolves around identifying the **breakout** of order blocks, which is interpreted as a signal to either enter or exit trades:
- **Buy Signal**:
- Generated when the closing price crosses **above** the last identified bullish order block (i.e., the highest point during the last upward crossover of highs).
- This signals a potential upward trend, and the strategy enters a long position.
- **Sell Signal**:
- Generated when the closing price crosses **below** the last identified bearish order block (i.e., the lowest point during the last downward crossover of lows).
- This signals a potential downward trend, and the strategy exits any open long positions.
### 3. **Strategy Execution**
The strategy is executed using the `strategy.entry()` and `strategy.close()` functions:
- **Enter Long Positions**: When a buy signal is generated, the strategy opens a long position (buying).
- **Exit Positions**: When a sell signal is generated, the strategy closes the long position.
### 4. **Visual Indicators on the Chart**
To make the strategy easier to follow visually, buy and sell signals are marked directly on the chart:
- **Buy signals** are indicated with a green upward-facing triangle above the bar where the signal occurred.
- **Sell signals** are indicated with a red downward-facing triangle below the bar where the signal occurred.
### 5. **Key Elements of the Strategy**
- **Trend Continuation and Reversals**: This strategy is attempting to capture trends based on the breakout of important price levels (order blocks). When the price breaks above or below a significant order block, it is expected that the market will continue in that direction.
- **Order Block Strength**: Order blocks are considered strong areas where price action could reverse or accelerate, based on how institutional investors place large orders.
### 6. **Paper Trading**
This script uses **paper trading** to simulate trades without actual money being involved. This allows users to backtest the strategy, seeing how it would have performed in historical market conditions.
### 7. **Basic Strategy Flow**
1. **Order Block Identification**: The script constantly monitors price movements to detect bullish and bearish order blocks.
2. **Buy Signal**: If the closing price crosses above the last order block high, the strategy interprets it as a sign of bullish momentum and enters a long position.
3. **Sell Signal**: If the closing price crosses below the last order block low, it signals a bearish momentum, and the strategy closes the long position.
4. **Visual Representation**: Buy and sell signals are displayed on the chart for easy identification.
### **Advantages of the Strategy:**
- **Simple and Clear Rules**: The strategy is based on clearly defined rules for identifying order blocks and trade signals.
- **Effective for Trend Following**: By focusing on breakouts of order blocks, this strategy attempts to capture strong trends in the market.
- **Visual Aids**: The plot of buy/sell signals helps traders to quickly see where trades would have been placed.
### **Limitations:**
- **No Shorting**: This strategy only enters long positions (buying). It does not account for shorting opportunities.
- **No Risk Management**: There are no built-in stop losses, trailing stops, or profit targets, which could expose the strategy to large losses during adverse market conditions.
- **Whipsaws in Range Markets**: The strategy could produce false signals in sideways or choppy markets, where breakouts are short-lived and prices quickly reverse.
### **Overall Strategy Objective:**
The goal of the strategy is to enter into long positions when the price breaks above a significant order block, and exit when it breaks below. The strategy is designed for trend-following, with the assumption that price will continue in the direction of the breakout.
Let me know if you'd like to enhance or modify this strategy further!
123 Reversal Trading StrategyThe 123 Reversal Trading Strategy is a technical analysis approach that seeks to identify potential reversal points in the market by analyzing price patterns. This Pine Script™ code implements a version of this strategy, and here’s a detailed description:
Strategy Overview
Objective: The strategy aims to identify bullish reversal patterns using the 123 pattern and manage trades with a specified holding period and a 20-day moving average as an additional exit condition.
Key Components:
Holding Period: The number of days to hold a trade is adjustable, with the default set to 7 days.
Moving Average: A 200-day simple moving average (SMA) is used to determine an exitcondition based on the price crossing this average.
Pattern Recognition:
Condition 1: The low of the current day must be lower than the low of the previous day.
Condition 2: The low of the previous day must be lower than the low from three days ago.
Condition 3: The low two days ago must be lower than the low from four days ago.
Condition 4: The high two days ago must be lower than the high three days ago.
Entry Condition: All four conditions must be met for a buy signal.
Exit Condition: The position is closed either after the specified holding period or when the price reaches or exceeds the 200-day moving average.
Relevant Literature
Graham, B., & Dodd, D. L. (1934). Security Analysis. This classic work introduces fundamental analysis and technical analysis principles which are foundational to understanding patterns like the 123 reversal.
Murphy, J. J. (1999). Technical Analysis of the Financial Markets. Murphy provides an extensive overview of technical indicators and chart patterns, including reversal patterns similar to the 123 pattern.
Elder, A. (1993). Trading for a Living. Elder discusses various trading strategies and technical analysis techniques that complement the understanding of reversal patterns and their application in trading.
Risks and Considerations
Pattern Reliability: The 123 reversal pattern, like many technical patterns, is not foolproof. It can generate false signals, especially in volatile or trending markets. This may lead to losses if the pattern does not play out as expected.
Market Conditions: The strategy may perform differently under various market conditions. In strongly trending markets, reversal patterns might not be as reliable.
Lagging Indicators: The use of the 200-day moving average as an exit condition can be considered a lagging indicator. This means it reacts to price movements with a delay, which might result in late exits and missed profit opportunities.
Holding Period: The fixed holding period of 7 days may not be optimal for all market conditions or stocks. It is essential to adjust the holding period based on market dynamics and individual stock behavior.
Overfitting: The parameters used (like the number of days and moving average length) are set based on historical data. Overfitting can occur if these parameters are tailored too specifically to past data, leading to reduced performance in future scenarios.
Conclusion
The 123 Reversal Trading Strategy is designed to identify potential market reversals using specific conditions related to price lows and highs. While it offers a structured approach to trading, it is essential to be aware of its limitations and potential risks. As with any trading strategy, it should be tested thoroughly in various market conditions and adjusted according to the individual trading style and risk tolerance.
